What Are the Requirements to Remove Mortgage Insurance?

Short Answer

Mortgage insurance removal depends on your loan type and your current loan balance. Some mortgage insurance can be removed once certain conditions are met. Other types may be required for a set period — or for the life of the loan.

What’s Happening

You may have built equity in your home and want to lower your monthly payment by removing mortgage insurance.

Mortgage insurance is usually required when a home is purchased with less than 20% down. The rules for removal depend on whether your loan has:

• Private Mortgage Insurance (PMI) on a conventional loan, or
• Mortgage Insurance Premium (MIP) on an FHA loan

Because these programs follow different rules, the requirements are not the same for every borrower.

What It Means for You

If You Have PMI (Conventional Loan)

You may be able to remove PMI if:

• Your loan balance is at or below 80% of your home’s original value (or possibly current value, depending on the situation)
• You have a strong payment history
• You are current on your mortgage
• Your property value has not declined

In some cases, a property valuation (such as an appraisal or broker price opinion) may be required. The valuation must be arranged through us and paid for by you.

PMI will automatically cancel when your loan is scheduled to reach 78% of the original property value, as long as your loan is current.

If You Have MIP (FHA Loan)

Removal rules depend on when your loan was originated and your original down payment:

• Some FHA loans require MIP for 11 years.
• Others require MIP for the life of the loan.
• Certain older FHA loans may allow cancellation once the loan balance reaches 78% of the original value and required timeframes are met.

Some FHA loans cannot have MIP removed without refinancing into a different loan type.

Important distinctions:

• Removing mortgage insurance does not change ownership of your property.
• You remain financially responsible for your mortgage loan.
• Only borrowers listed on the loan — or someone you have authorized — can request or discuss mortgage insurance removal.

Meeting one requirement alone does not guarantee removal. All conditions must be satisfied and reviewed.

What You Should Do Next

1. Confirm whether your loan has PMI (conventional) or MIP (FHA).
2. Review your current loan balance and payment history.
3. Contact us to request a mortgage insurance eligibility review.
4. If required, submit a written request. We will provide instructions after you contact us.

If a valuation is needed, we will arrange it and explain any applicable fee.

You will receive written notice once a decision has been made.

Important Information

• Not all mortgage insurance can be removed.
• Some loans require mortgage insurance for a set number of years or the full loan term.
• A valuation fee may apply if a property review is required.
• Valuation fees are generally non-refundable once the inspection is completed.
• You cannot order your own appraisal for this purpose.
• Approval is not automatic and must be reviewed.

Contact Us If

• You’re unsure whether you have PMI or MIP
• You want to know if your loan meets removal requirements
• You believe your loan balance is below 80%
• You have questions about valuation requirements or fees
• You want to request a mortgage insurance review